Zoomcar Sees 9% Growth In Bookings In Q1 2024
Total number of bookings increased by 9 per cent from 1,03,643 bookings during the three months ended June 30, 2023, to 1,12,944 for the three months ended June 30, 2024
Zoomcar Holdings, a marketplace for car sharing in emerging markets, has reported select financial results for the first fiscal quarter ended June 30, 2024.
Number of bookings: Total number of bookings increased by 9 per cent from 1,03,643 bookings during the three months ended June 30, 2023, to 1,12,944 for the three months ended June 30, 2024. This is an important milestone as they achieved this marginal growth with lower expenditure on performance marketing and host incentivisation.
Contribution Margin: Their contribution margin improved significantly from a contribution loss of 45 per cent or $1.2 million for the three months ended June 30, 2023, to a contribution profit of 20 per cent or $0.5 million for the three months ended June 30, 2024.
Cost Optimisation Efforts: The company reduced their cost of revenue by 58 per cent, from $3.6 million during the three months ended June 30, 2023, to $1.5 million during the three months ended June 30, 2024. This significant reduction was a result of broad-based cost optimisation initiatives driven by technology and product. An example is a tighter guest verification process which uses multiple inputs from Aadhar, driving license and selfie authentication. This has led to a healthy reduction in late returns and accidents.
Reduction in adjusted EBITDA: Their adjusted EBITDA demonstrated significant improvement, narrowing from a loss of $6.8 million during the three months ending June 30, 2023, to a loss of $3.3 million during the three months ending June 30, 2024.
Guest trip rating has reached an all-time high: During the three months ending June 30, 2023, the platform’s average guest trip rating was 4.16. By the end of Q1 2024, their product-focused approach to enhancing the customer experience continued to yield dividends. Their commitment to improving in-trip communication between guests and hosts resulted in a significant step function improvement in the overall in-trip experience for both customer groups. The average guest trip rating now stands at an impressive 4.71, the highest to date. Additionally, the number of active vehicles with a platform rating exceeding 4.5 reached 5,648 in the quarter.
“Our first fiscal quarter results reflect a robust performance in our ongoing efficiency efforts. We achieved record non-GAAP gross profit and contribution profit, while also laying the groundwork for substantial revenue growth in the coming quarters,” stated Hiroshi Nishijima, CEO of Zoomcar.
He further added, “This period also marked a significant milestone with the third consecutive quarter of contribution profit. As we look ahead to the end of Fiscal year 2025, we anticipate a meaningful return to growth, supported by enhanced profitability due to our streamlined operational infrastructure.”
